Last pay revision of PSU officers was done in year 1997. After a Gap of 10 years, 2nd Pay Revision Commission was set up on 30/11/06 under Mr. Justice M.Jagannadha Rao, Retired Judge, Supreme Court of India. This commission gave its report on 31/05/08, after a detailed study of 18 months of Market scenario, Quantum of revision and various other factors.
The main Highlights of the “PSU pay commission” reports were:
1. Classification of PSU in A+, A, B, C, D categories based on their profit and other criterias. Separate Pay scale was decided for these categories with appropriate RISK PAY component added into new basic.
2. A+ categories were mostly the Navratna PSU (eg. Indian Oil, ONGC, NTPC, BHEL and other 7 PSU) making high profits and internationally acclaimed.
3. Continuous Loss making PSU were kept under category 'D' for whom Govt has to give financial assistance to pay salary.
4. 2-4% annual increment to be decided by PSU management.
Govt set up a “Committee of Secretaries (CoS)” to look into minor objections raised by PSU in the commission’s report. When the revised report was submitted by this CoS , it was totally different than what was recommended by pay commission. And Cabinet approved this revised report.
The CoS report, instead of doing minor modification for benefit of PSU, APPROVED 'D' CATEGORY SALARY FOR ALL PSU, INCLUDING HIGHLY EFFICIENT AND HUGE PROFIT MAKING NAVRATNA PSUs. IT SCRAPPED THE CONCEPT OF CATEGORISATION ITSELF. It is this decision that all PSU are demanding to take back.
As a matter of statistics: I will explain an example of salary of an entry level officer of PSU.
Pre Revision Salary already received for Jan-07
Pay scale : Rs 10,750 – Rs 16,750
Basic : Rs 10,750
Dearness Pay (50% of basic) : Rs 5,375
DA (18.8% of basic): Rs 3,032
Total : Rs 19,157
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New salary as Recommended by Pay revision Committee
Pay scale : Rs 24,000 – Rs 37,000
Risk Pay : Rs 2,200
New Basic : Rs 26,200
Total : Rs 26,200
% increase in salary : 36.76%
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Final approval as suggested by CoS
Pay scale : Rs 20,600 – Rs 46,500
Risk Pay : NIL
New Basic : Rs 23,600 (30% fitment on old Basic+DA)
Total : Rs 23,600
% increase in salary : 23.2%
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There is no 50% - 200% increase in salary as published in paper/news channels.
1. As visible, an increase of Rs 6000 approx was recommended by pay commission, an increase in basic. But this small increase was also reduced by CoS .
2. The annual increment of 4% was reduced to uniform 3%.
3. The 50% DA merger benefit was never mentioned in both reports.
4. The Loss due to revision of report keeps on increasing with seniority of officer.
Any reduction in basic means loss in HRA and other benefits which are calculated on Basic salary. Approximately, there will be a loss of Rs 7000 per month for entry level officer if CoS approved report is implemented. And this loss will be in range of 20000-40000 for higher officers.
PSU officers work in direct competition with private players. They are different than Govt staff. As an irony, after the 6th Pay commission implementation of central govt. staff and this revision recommended for PSU, same level officer of central Govt now draws much more salary than PSU officer.
THE PAY REVISION COMMISSION’S REPORT FOR CENTRAL GOVT STAFF WAS IMPLEMENTED WITH UPWARD MODIFICATION, THEN WHY PSU PAY COMMISSION IS IMPLEMENTED WITH DOWNWARD MODIFICATION?????
Friday, June 12, 2009
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